Discover 3 European Stocks Estimated To Be Up To 38.3% Below Intrinsic Value

Operations: The company’s revenue is derived from its Sensors segment, which accounts for €1.96 billion, and its Optronics segment, contributing €363 million.

Estimated Discount To Fair Value: 22.5%

Hensoldt is trading at €91.95, undervalued compared to its estimated fair value of €118.68, offering potential upside based on discounted cash flows (DCF). Despite a Q1 net loss of €30 million, earnings are expected to grow significantly by 29.2% annually over the next three years, surpassing the German market’s average growth rate. However, interest payments are not well covered by earnings and share price volatility remains high in recent months.

XTRA:HAG Discounted Cash Flow as at Jun 2025

Overview: RENK Group AG specializes in the design, engineering, production, testing, and servicing of customized drive systems both in Germany and internationally, with a market cap of €6.94 billion.

Operations: The company’s revenue is primarily derived from its Vehicle Mobility Solutions segment at €736.77 million, followed by Marine & Industry at €324.40 million and Slide Bearings at €126.77 million.

Estimated Discount To Fair Value: 18.3%

RENK Group, trading at €69.38, is undervalued relative to its estimated fair value of €84.89 based on DCF analysis. Earnings are projected to grow significantly at 29.35% annually over the next three years, outpacing the German market’s growth rate. Despite high share price volatility and substantial debt levels, RENK’s recent Q1 results showed a turnaround with a net income of €0.681 million compared to a loss last year, supporting its potential for value creation.

XTRA:R3NK Discounted Cash Flow as at Jun 2025

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BVB:SNG XTRA:HAG and XTRA:R3NK.

This article was originally published by Simply Wall St.

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